By FXEmpire.com
Analysis and Recommendation: (close of Asian session)
The USD/JPY is trading at 79.51 as the USD gained momentum at towards the end of the day on Monday. US markets were closed for the Memorial Day holiday, but investors became optimistic as polls in Greece showed that the New Democratic Party was in the lead, but optimism turned to pessimism, as Spanish banking problems continued to plague the EU.
Asian markets will have little capacity to influence the global tone with the possible exception of China’s state version of the purchasing managers’ index that is due out on Thursday night. Consensus is expecting a modest drop to a still expansionary reading that lies at odds with the private sector PMI which remains in contraction, and with hard data on industrial production that has slowed markedly into the new year.
China is set to ramp up stimulus spending to help stabilize the economy, with a program of interest-rate cuts and infrastructure-related spending being planned, according to analysts, who caution the program won’t be big enough to bring about a rapid turnaround in the slowing mainland economy.
RBA Governor Glenn Stevens’s delivers a speech into the Monday market open ahead of the June 5th RBA rate decision that consensus expects will yield no change in the cash target rate of 3.75%. The RBA has cut by 100bps since October in two moves.
Japan’s unemployment rate crept up 4.6% in April from 4.5% in March, slightly worse than expected, as markets were expecting the rate to come in unchanged, which sent Japanese equities dipping in early Tuesday trading. Year-on-year household spending rose 2.6% in April, slightly better than forecasts for a 2.4% gain.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Economic Data May 29, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
May 29 |
JPY |
Unemployment Rate |
4.6% |
4.5% |
4.5% |
|
JPY |
Retail Sales (YoY) |
5.8% |
6.3% |
10.3% |
|
|
AUD |
HIA New Home Sales (MoM) |
6.9% |
-9.4% |
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
|
Date |
Time |
Currency |
Previous |
|
|
May 30 |
1:30 |
AUD |
Retail Sales m/m |
0.9% |
|
1:30 |
AUD |
Construction Work Done q/q |
-4.6% |
|
|
14:00 |
USD |
Pending Home Sales m/m |
4.1% |
|
|
23:50 |
JPY |
Prelim Industrial Production m/m |
1.3% |
|
|
May 31 |
1:00 |
NZD |
NBNZ Business Confidence |
35.8 |
|
1:30 |
AUD |
Building Approvals m/m |
7.4% |
|
|
1:30 |
AUD |
Private Capital Expenditure q/q |
-0.3% |
|
|
1:30 |
AUD |
Private Sector Credit m/m |
0.4% |
|
|
1:30 |
JPY |
Average Cash Earnings y/y |
1.3% |
|
|
12:15 |
USD |
ADP Non-Farm Employment Change |
119K |
|
|
12:30 |
USD |
Prelim GDP q/q |
2.2% |
|
|
12:30 |
USD |
Unemployment Claims |
370K |
|
|
13:45 |
USD |
Chicago PMI |
56.2 |
|
|
15:00 |
USD |
Crude Oil Inventories |
0.9M |
|
|
23:50 |
JPY |
Capital Spending q/y |
7.6% |
|
|
Jun 1 |
12:30 |
USD |
Non-Farm Employment Change |
115K |
|
12:30 |
USD |
Unemployment Rate |
8.1% |
|
|
12:30 |
USD |
Core PCE Price Index m/m |
0.2% |
|
|
12:30 |
USD |
Personal Spending m/m |
0.3% |
|
|
14:00 |
USD |
ISM Manufacturing PMI |
54.8 |
Click here for updated USD/JPY News.
Originally posted here
